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HomeMy WebLinkAbout6. DFW Airport FY 2021 Debt Financing ProgramCity of Fort Worth May 11, 2021 DFW International Airport FY 2021 Debt Financing Summary 2 59th Supplemental Bond Ordinance •Amends master bond ordinance to change definition of “eligible security” for escrow accounts to include US Agencies (in addition to US Treasuries) 60th Supplemental Bond Ordinance •Permits the Authorized Officers to issue refunding and new money bonds for the Airport •Establishes parameters for issuances 61st Supplemental Bond Ordinance •Annual request to authorize the refunding of entire commercial paper program through bonds 62nd Supplemental Bond Ordinance •Allows DFW to enter into a new interim financing credit facility with Wells Fargo Bank to provide short-term capital project financing Supplemental Bond Ordinances Summary 3 FY 2021 Plans •Advance refund $456 million of Alternative Minimum Tax debt callable on 11/1/2022 •Estimated gross savings over $70M million •Refund approximately $356 million of tax- exempt debt •Estimated gross savings over $100 million Additional refundings are currently planned for 2022 and 2023 Refunding Opportunities Taxable $456 Taxable $254 Tax- Exempt $356 Tax - Exempt $484 Tax- Exempt $550 $ $100 $200 $300 $400 $500 $600 $700 $800 $900 2021 2022 2023Callable Par, in millions ($)Taxable Tax-Exempt 4 •Not to exceed $2.4 billion over 12 months •3 transactions •Approximately $1.3 billion to refund existing bonds and commercial paper, plus $150 million of new money bonds (table to left) •Plus, up to $254 million to advance refund bonds if financially advantageous •Plus, up to $850 million for new money proceeds if financially advantageous •Interest rates -not to exceed maximum allowed under state law •Final maturity -not to exceed 11/1/2051 60th Supplemental Bond Ordinance Series Tax Status Purpose Approximate Par Amount 2021A Taxable Advance refunding of AMT bonds callable 2022 and commercial paper $640MM 2021B Tax-Exempt Refunding of bonds callable 2021 and commercial paper $415MM 2021C Tax-Exempt New Money proceeds and refunding commercial paper $200MM 5 Co-Financial Advisors Hilltop Securities Estrada Hinojosa Bond Counsel McCall, Parkhurst & Horton, LLP West and Associates, LLP Co-Disclosure Counsel Bracewell, LLP Hardwick Law Firm, LLC Co-Underwriters’ Counsel Kelly Hart & Hallman LLP Escamilla Poneck, LLP Financing Team 6 •Firms were selected from the pool approved by the Board in January 2018 •Anticipated MWBE participation will exceed 25% across the three transactions Underwriter Syndicates 2021A Taxable 2021B Tax-Exempt 2021C Tax-Exempt Anticipated Issue Size (Par)$640MM $415MM $200MM Sr. Manager Banc of America Securities RBC Capital Markets Academy Securities* Co-Senior Citibank Stern Brothers*Jefferies Co-Senior JP Morgan Co-Manager UBS Raymond James Wells Fargo Co-Manager Cabrera*Piper Sandler Loop Capital Markets* *MWDVBE Firm 7 62nd Supplemental Bond Ordinance New Interim Financing Credit Facility •Credit facility for drawdown bonds to finance certain capital projects •For $225 million facility with Wells Fargo •Similar to a commercial paper program •DFW will take-out the interim financing with long-term bonds upon completion of projects (2023)